KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB) has bagged a RM230 million engineering, procurement, construction and commissioning (EPCC) contract to build a power plant.
KAB, through its wholly owned subsidiary KAB Energy Holdings Sdn Bhd, has secured a letter of award (LoA) from Petronas Gas Bhd's (PGB) unit, Regas Terminal (Lahad Datu) Sdn Bhd for the 52-megawatt (MW) power plant and its associated facilities in Sabah.
KAB managing director Datuk Lai Keng Onn said securing this project award from PGB amplifies KAB's sustainable energy initiatives undertaken since 2019.
Upon completion, Lai said the power plant would be the country's single largest gas engine plant and serve as a crucial power source for Petronas' upcoming ZLNG plant.
"Furthermore, our joint feasibility studies with PGB show that the power plant is reliable and will achieve a significant carbon reduction.
"We are committed to a continuous relationship with PGB to ensure the successful completion of this power plant while contributing to the nation's sustainability agenda," he said in a statement.
According to Lai, the power plant will be located at the Sipitang Oil and Gas Industrial Park. It will be the sole source of energy supply for Petronas' upcoming floating liquefied natural gas (ZLNG) project.
The ZLNG plant, slated to be Sabah's first nearshore natural gas facility, has a minimum capacity of 2.0 million tonnes per annum.
EPCC works for the power plant will commence in the second quarter of 2023 and are targeted to complete in the first quarter of 2026.
KAB's Sustainable Energy Solutions (SES) division has a strong track record across co-generation and waste-to-heat recovery plants and solar photovoltaic (PV) systems.